MSME Statistics

2016 MSME STATISTICS

Number of Establishments

The 2016 List of Establishments of the Philippine Statistics Authority (PSA) recorded a total of 915,726 business enterprises operating in the Philippines. This was 1.64% more than the 900,914 business establishments reported in 2015. Micro, small and medium enterprises (MSMEs) account for 99.57% (911,768) of the total establishments, of which 89.63% (820,795) were microenterprises, 9.50% (86,955) were small enterprises, and 0.44% (4,018) were medium enterprises. Large enterprises made up the remaining 0.43% (3,958).

Sectoral Distribution

The top five (5) industries in terms of the number of MSMEs in 2016 were: (1) Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles with 420,638 establishments; (2) Accommodation and Food Service Activities with 119,718; (3) Manufacturing with 115,748 establishments; (4) Other Service Activities with 56,466 establishments; and (5) Financial and Insurance Activities with 39,925 establishments. These industries accounted for about 82.5% of the total number of MSME establishments.

Geographical Spread of MSMEs

Majority of the MSMEs in operation in 2015 can be found in the National Capital Region (NCR), with 190,166 business establishments; Region 4-A (CALABARZON), 131,011; Region 3 (Central Luzon) with 100,880; Region 7 (Central Visayas) with 53,218; and Region 1 (Ilocos), 47,996. These top five (5) locations accounted for about 58.4% of the total number of MSME establishments in the country.

Employment

MSMEs generated a total of 4,879,179 jobs in 2016 versus 2,831,729 for the large enterprises. This indicates that MSMEs contributed almost 63.3% of the total jobs generated by all types of business establishments that year. Of these, 30.4% or 2,345,992 jobs were generated by micro enterprises; 25.7% or 1,981,316 by small enterprises; and 7.2% or 551,871 by medium enterprises.

Sales and Census Value-Added

In terms of value-added, the MSME sector contributed 35.7%1 of the total with manufacturing contributing the largest share of 6.87%. Wholesale and retail trade and repair contributed 6.58% followed by financial intermediation with a share of 6%.

Within the sector, small enterprises accounted for the largest share of 20.5%. Medium enterprises followed with a share of 10.3% while micro enterprises registered a share of 4.9%. Among small enterprises, wholesale and retail trade and repair contributed with the most with a share of 4.07% followed by manufacturing with a share of 3.82% while financial intermediation was next with a share of 3.35%.

For medium enterprises, manufacturing accounted for the biggest share of 2.77% followed by electricity, gas, and water with a share of 1.92% and financial intermediation with 1.87%. For micro enterprises, wholesale and retail trade and repair represented the largest contribution of 1.73%.

Exports Contribution of MSMEs

MSMEs account for 25% of the country’s total exports revenue. It is also estimated that 60% of all exporters in the country belong to the MSME category. MSMEs are able to contribute in exports through subcontracting arrangement with large firms, or as suppliers to exporting companies.